SHAHMURAD SUGAR MILLS LIMITED
Half Yearly Results for the period 1st October 2019 to 31st March, 2020 SHAHMURAD SUGAR MILLS LTD.
COMPANY INFORMATION BOARD OF DIRECTORS MR. ZIA ZAKARIA Managing Director & CEO MR. ABDUL AZIZ AYOOB MR. NOOR MOHAMMAD ZAKARIA MRS. SANOBAR HAMID ZAKARIA MR. NAEEM AHMED SHAFI Independent Director MR. KHURRAM AFTAB Independent Director
BOARD AUDIT COMMITTEE MR. NAEEM AHMED SHAFI Chairman MR. NOOR MOHAMMAD ZAKARIA Member MRS. SANOBAR HAMID ZAKARIA Member
HUMAN RESOURCE AND REMUNERATION COMMITTEE MR. KHURRAM AFTAB Chairman MR.NOOR MOHAMMAD ZAKARIA Member MR. ZIA ZAKARIA Member
CHIEF FINANCIAL OFFICER MR. ZAID ZAKARIA
COMPANY SECRETARY MR. MOHAMMAD YASIN MUGHAL FCMA
AUDITORS M/s. KRESTON HYDER BHIMJI & CO. Chartered Accountants
LEGAL ADVISOR MR. IRFAN Advocate
REGISTERED OFFICE 96-A, SINDHI MUSLIM HOUSING SOCIETY, KARACHI-74400 Tel: 34550161-63 Fax: 34556675
FACTORY JHOK SHARIF, TALUKA MIRPUR BATHORO, DISTRICT SUJAWAL (SINDH)
REGISTRAR & SHARES REGISTRATION OFFICE M/S C & K MANAGEMENT ASSOCIATES (PVT) LTD. 404-TRADE TOWER, ABDULLAH HAROON ROAD, NEAR METROPOLE HOTEL, KARACHI - 75530
WEBSITE www.shahmuradsugar.co
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DIRECTORS' REPORT Dear Members Asslamu Alaikum
On behalf of Board, I take the opportunity to present before you with great pleasure the un-audited financial statements of your company for the period ended March 31, 2020. The financial statements have been reviewed by the Auditors as required under the Code of Corporate Governance.
Salient features of production and Financial Statements are as under:
PRODUCTION DATA March 31, 2020 March 31, 2019
Sugarcane crushed (M Tons) 444,430 500,270 Sugar produced (M Tons) 48,786 55,425 Sugar recovery percentage 11.00 11.08 Molasses produced (M Tons) 19,715 23,100 Ethanol Production (M Tons) 24,230 34,897
FINANCIAL DATA (Rupees in thousands)
Sales revenue 5,064,331 4,543,954 Cost of sales (4,504,646) (3,665,337) Gross profit 559,685 878,617 Distribution cost (8,928) (54,526) Administrative expenses (133,637) (124,044) Other operating charges (27,964) (47,943) Other income 106,742 71,632 Financial cost (189,631) (168,701) Profit before taxation 306,267 555,035 Provision for taxation (57,740) (3,687) Profit after taxation 248,527 551,348 Earnings per share Rs.11.77 Rs.26.11
Segment wise performance is elaborated as under: SUGAR DIVISION
During the period under review the mill crushed 444,430 metric tons of cane and produced 48,786 metric tons of sugar. During the same period lastyear, the mill crushed 500,270 metric tons of cane and produced 55,425 metric tons of sugar. Production during the current period is lower than last year by 12 percent or 6,639 metric tons. The decrease in production of sugar was low mainly due to non- availability of raw material.The poor condition of crop in the province due to non- availability of water. For the crushing season the Government notified support price of sugarcane at Rs. 192/- per forty kgs of cane but Mill has to pay higher price of cane in order to run the mill without interruption.
During the current period the business activities remained suspended due to lock down on account of corona virus in the country which has been reflected in our sales volumes.
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ETHANOL DIVISION
During the period under consideration the Ethanol Division produced 24,230 metric tons of ethanol as against 34,897 metric tons produced in the same period of last year.The production is substantially low when compared with the output of the last year which was due to non-availability of raw material and interruption due to lock down on account of corona virus. It is anticipated that the production during the remaining period of the year would hopefully be maintained. FUTURE OUTLOOK
It is expected that during the next crushing season cane crop in country would be good as natural rain fall and canal water is expected to be available in upper part of the country. We hope that the Government would take timely decision to ensure availability of water in lower part of the province by judicious distribution thereof. Future outlook of ethanol appear to be positive as the demand of our premium product increased. The company is taking strong measures to improve the contribution of ethanol division. BOARD OF DIRECTORS
We are deeply aggrieved and regret to report that Mr. Ismail H Zakaria who was the Chairman of the Board has expired on May 27, 2020 May Almighty Allah (SWP) grant him maghfirah, illuminate his grave, and grant him place into Jannat-ul-Firdos Ameen. Upon his sad demise the position of Chairman of the Board has fallen vacant which will be filled in due course of time and except this there is no other change in the composition in the Board. The Board of Directors wishes to assure its respectable stakeholders for the dedicated efforts to achieve the success with better planning to overcome, In Shah Allah, the difficult situation being faced presently by the sugar industry of the country. Please extend your pray to Almighty Allah to guide and help us to achieve the desired goals. (Ameen)
ZIA ZAKARIA ABDUL AZIZ AYOOB Managing Director & CEO Director
Karachi: Dated: May 28, 2020
3 AUDITORS' REPORT TO THE MEMBERS ON REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS
INTRODUCTION:
We have reviewed the accompanying condensed interim Statement of Financial Position of SHAHMURAD SUGAR MILLS LIMITED ("the Company") as of March 31, 2020, and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows and notes to the financial statements for the half year ended (here-in-after referred to as the "condensed interim financial statements"). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with the accounting and reporting standards as applicable in Pakistan. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.
The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for quarters ended March 31, 2020 and March 31, 2019 have not been reviewed, as we were required to review only the cumulative figures for the half year ended March 31, 2020.
SCOPE OF REVIEW:
We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of these condensed interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
CONCLUSION:
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting.
The engagement partner of the review resulting in this independent auditor's report is Shaikh Mohammad Tanvir.
Chartered Accountants Karachi Dated: May 28, 2020
Suite No. 1601, 16th Floor, Kashif Centre, Shahrah-e-Faisal, Karachi. Phone: 92-21-35640050 to 52 Website: www.krestonhb.com E-mail: [email protected], [email protected] OTHER OFFICES LAHORE - FAISALABAD - ISLAMABAD
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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT MARCH 31, 2020 Un-audited Audited March September 2020 2019 Note (Rupees in thousand) ASSETS NON CURRENT ASSETS Property, plant and equipment 4 5,562,293 5,498,699 Intangible asset 5 - - Long term investment in associate 6 1,351 1,351 Long term loans 1,515 2,214 Long term deposits 2,429 2,429 Deferred taxation 25,027 25,726 5,592,615 5,530,419 CURRENT ASSETS Stores, spare parts and loose tools 215,262 243,590 Stock-in-trade 5,592,006 1,967,859 Trade debts 557,611 459,571 Loans and advances 505,099 1,586,334 Trade deposits and short term prepayments 10,789 1,095 Other receivables 234,788 235,130 Short term investment - 200,714 Income tax refundable-Net 106,738 103,896 Cash and bank balances 82,854 62,249 7,305,147 4,860,438 12,897,762 10,390,857 EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorised Capital 25,000,000 ordinary shares of Rs. 10 each 250,000 250,000 Issued, subscribed and paid-up capital 211,187 211,187 Revenue reserve General reserve 80,000 80,000 Share of associate's unrealized loss on re-measurement of its investment at fair value through other comprehensive income (2,441) (2,441) Unappropriated profit 2,545,643 2,612,860 Capital reserve Revaluation surplus on property, plant and equipment 1,432,924 1,476,197 4,267,313 4,377,803 NON CURRENT LIABILITIES Long term financing 1,160,441 1,340,813 CURRENT LIABILITIES Trade and other payables 1,350,480 1,106,764 Accrued finance cost 80,422 39,816 Short term borrowings 5,621,454 3,112,830 Loan from related parties 48,135 48,135 Current portion of long term financing 359,688 358,560 Unclaimed dividend 9,829 6,136 7,470,008 4,672,241 CONTINGENCIES AND COMMITMENTS 7 - - 12,897,762 10,390,857
The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.
ZIA ZAKARIA AZIZ AYOOB ZAID ZAKARIA Managing Director & CEO DIRECTOR Chief Financial Officer 5 SHAHMURAD SUGAR MILLS LTD.
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED) FOR THE HALF YEAR ENDED MARCH 31, 2020
For the half year For the Quarter October to March January to March Note 2020 2019 2020 2019 (Rupees in thousand)
Sales 5,064,331 4,543,954 2,370,346 1,937,597 Cost of sales 8 (4,504,646) (3,665,337) (2,270,219) (1,617,897) Gross profit 559,685 878,617 100,127 319,700
Profit from trading activities 1,125 1,353 423 866 560,810 879,970 100,550 320,566
Distribution cost (8,928) (54,526) (7,642) (33,273) Administrative expenses (133,637) (124,044) (64,348) (68,080) Other operating charges (27,964) (47,943) (7,813) (16,591) (170,529) (226,513) (79,803) (117,944) Operating profit 390,281 653,457 20,747 202,622
Other income 105,617 70,279 68,770 35,836 495,898 723,736 89,517 238,458
Finance cost (189,631) (168,701) (119,324) (99,425)
Profit/(loss) before taxation 306,267 555,035 (29,807) 139,033
Taxation - Current (57,041) - (24,772) - - Deferred (699) (3,687) (4,461) 20,701 (57,740) (3,687) (29,233) 20,701
Profit after taxation 248,527 551,348 (59,040) 159,734
Earning/(loss) per share - Basic and diluted - Rupees 11.77 26.11 (2.80) 7.56
The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.
ZIA ZAKARIA AZIZ AYOOB ZAID ZAKARIA Managing Director & CEO DIRECTOR Chief Financial Officer
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CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE HALF YEAR ENDED MARCH 31, 2020
For the half year For the Quarter October to March January to March 2020 2019 2020 2019 (Rupees in thousand)
Profit/(loss) after taxation 248,527 551,348 (59,040) 159,734
Other comprehensive income - - - -
Total comprehensive income for the period 248,527 551,348 (59,040) 159,734
The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.
ZIA ZAKARIA AZIZ AYOOB ZAID ZAKARIA Managing Director & CEO DIRECTOR Chief Financial Officer
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CONDENSED INTERIM STATEMENT OF CASH FLOW (UN-AUDITED) FOR THE HALF YEAR ENDED MARCH 31, 2020 March March 2020 2019 (Rupees in thousand) A. CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation 306,267 555,035 Adjustment for : Depreciation 183,027 167,698 Gain on disposal of property, plant and equipment (469) (231) Provision for obsolescence and slow moving items 7,500 6,500 Finance cost 189,631 168,701 379,689 342,668 685,956 897,703 (Increase) / decrease in current assets Stores, spare parts and loose tools 20,828 (40,526) Stock in trade (3,624,147) (2,054,340) Trade debts (98,040) (197,879) Loans & advances 1,081,235 (22,565) Short term prepayments (9,694) (8,305) Short term investment 200,714 - Other receivables 342 138,769 (2,428,762) (2,184,846) Increase in current liabilities Trade and other payables 243,716 209,003 Short term borrowings 2,508,624 1,858,133 2,752,340 2,067,136 1,009,534 779,993 Decrease in long term loan 699 50 Income tax paid (59,883) (45,067) Finance cost paid (149,025) (145,277) (208,209) (190,294) Net cash inflow from operating activities 801,325 589,699 B. CASH FLOW FROM INVESTING ACTIVITIES Additions in property, plant and equipment (246,991) (344,838) Sale proceeds from disposal of property, plant and equipment 839 714 Net cash outflow from investing activities (246,152) (344,124) C. CASH FLOW FROM FINANCING ACTIVITIES Long term finance received - 39,687 Repayment of long term financing (179,244) (124,589) Dividend paid (355,324) (145,371) Net cash (outflows) from financing activities (534,568) (230,273) Net increase in cash and bank balances (A+B+C) 20,605 15,302 Cash and bank balance at the beginning of the period 62,249 45,452 Cash and bank balance at the end of period 82,854 60,754
The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.
ZIA ZAKARIA AZIZ AYOOB ZAID ZAKARIA Managing Director & CEO DIRECTOR Chief Financial Officer 8 SHAHMURAD SUGAR MILLS LTD.
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE HALF YEAR ENDED MARCH 31, 2020 Share of Capital Reserve Issued, Associate's Un- Surplus on Subscribed General unrealised appropriated revaluation of Total & paid up reserves (loss)/gain on profit Property Plant capital remeasurement & Equipment of investment (Rupees in thousand) Balances as at October 01, 2018 (Audited) 211,187 80,000 (2,501) 1,462,075 1,582,959 3,333,720 During the half year ended March 31, 2019
Transactions with owners Final Dividend for 30-September-2018 @ Rs. 7.00 Per Share - - - (147,831) - (147,831) Total Comprehensive Income for the half year ended March 31, 2019 - - - 551,348 - 551,348 Transfer from surplus on revaluation of property, plant and equipment on account of incremental depreciation -net of deferred tax - - - 46,890 (46,890) -
Balances at March 31, 2019 211,187 80,000 (2,501) 1,912,482 1,536,069 3,737,237
Balances as at October 01, 2019 (Audited) 211,187 80,000 (2,441) 2,612,860 1,476,197 4,377,803 During the half year ended March 31, 2020
Transactions with owners Final Dividend for 30-September-2019 @ Re. 17.00 Per Share - - - (359,017) - (359,017) Total Comprehensive Income for the half year ended March 31, 2020 - - - 248,527 - 248,527 Transfer from surplus on revaluation of property, plant and equipment on account of incremental depreciation -net of deferred tax - - - 43,273 (43,273) - Balances at March 31, 2020 211,187 80,000 (2,441) 2,545,643 1,432,924 4,267,313
The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.
ZIA ZAKARIA AZIZ AYOOB ZAID ZAKARIA Managing Director & CEO DIRECTOR Chief Financial Officer
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NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE HALF YEAR ENDED MARCH 31, 2020
1. The Company and its Operations
The Company was incorporated in Pakistan as a public limited company on April 9, 1979. Its shares are quoted at the Pakistan Stock Exchange Limited. The registered office of the Company is located at 96-A, Sindhi Muslim Cooperative Housing Society, Karachi, Sindh. The Company owns and operates Sugar and Ethanol manufacturing units which are located at Jhoke Sharif, District Sujawal in the province of Sindh. The total area of industry land which includes the main factory is spread over 333.32 Acres.
2. Basis of Preparation
2.1 These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of :
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
- Provisions of and directives issued under the Companies Act, 2017.
Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.
The condensed interim financial statements does not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the company's annual financial statements for the year ended September 30, 2019.
2.2 These condensed Interim financial statements comprise of the condensed Interim Statement of Financial Position as at March 31, 2020 and the condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and the condensed interim statement of cash flows together with notes forming part thereof for the half year then ended which have been subjected to review and are not audited. This also includes the condensed interim statement of profit or loss and the condensed interim statement of comprehensive income for the quarter ended March 31, 2020. The comparative statement of financial position presented in these condensed interim financial statements has been extracted from the audited financial statements of the company as at September 30, 2019, whereas the comparative condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows figures have been extracted from the unaudited condensed interim financial statements for the half year ended March 31, 2019.
2.3 The figures of the condensed interim statement of profit or loss and the condensed interim statement of comprehensive income for the quarter ended March 31, 2020 and 2019 are not subject to review by the auditor.
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3. Significant accounting policies and disclosures
3.1 The accounting policies and methods of computation followed for the preparation of these condensed interim financial statements are consistent with those followed in the preparation of the company's annual financial statements for the year ended September 30, 2019.
3.2 Due to the seasonal availability of sugarcane, the manufacture of sugar is carried out during the period of availability of sugarcane and costs incurred/accrued up to the reporting date have been accounted for. Accordingly, the costs incurred/accrued after the reporting date will be reported in the subsequent interim and annual financial statements.
3.3 Certain new IFRSs and amendments to existing IFRSs, effective for periods beginning on or after October 01, 2019 are either not relevant or do not have material impact on the condensed interim financial statements, and are therefore not disclosed.
3.4 The preparation of these condensed interim financial statements require management to make estimates, assumptions and use judgements that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognized prospectively commencing from the period of revision. Judgements and estimates made by the management in the preparation of these condensed interim financial statements are the same as those that were applied to financial statements as at and for the year ended September 30, 2019.
3.5 The Company has assessed that the Company's accounting policies with respect to revenue recongnition and disclosures are already line with IFRS 15 except that direct export freight, packing and related charges of Rs. 399.196 million previously classified in distribution cost are now classified as part of cost of sales (note 8).
Un-Audited Audited March 31, September 30, 2020 2019 (Rupees in thousand)
4. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 4.1 5,525,161 5,342,921 Capital work in progress 4.2 37,132 155,778
5,562,293 5,498,699
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Un-Audited Audited March 31, September 30, 2020 2019 (Rupees in thousand)
4.1 OPERATING FIXED ASSETS
Opening book value 5,342,921 5,073,393
Direct additions during the period / year Furniture, Fixture and Fittings - 90 Office Equipment 332 2,539 Vehicle 7,627 28,860 7,959 31,489 Transfer from CWIP during the period / year
Owned
Factory building - 4,274 Non Factory building 254 3,993 Plant and Machinery 357,424 588,665 357,678 596,932
Disposals - Operating assets (net book value) (370) (1,182) Depreciation Charged for the period / year (183,027) (357,711)
Closing book value 5,525,161 5,342,921
4.2 CAPITAL WORK IN PROGRESS
Opening balance 155,778 241,928 Additions during the period / year
Civil Works - 8,520 Plant and Machinery 239,032 502,262 239,032 510,782 Capitalization during the period/year
Civil Works (254) (8,267) Plant and Machinery (357,424) (588,665) (357,678) (596,932)
Closing balance 37,132 155,778
5. INTANGIBLE ASSET
The cost of software of Rs. 5.917 million has has been fully amortised over a period of three years in accordance with the Company's accounting policy. However the software is still in use of the Company.
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6. LONG TERM INVESTMENT IN ASSOCIATE
The company holds 14.285% (September 2018: 14.285%) interest in Al-Noor Modaraba Management (Pvt) Limited. Since the financial statements of Al Noor Modaraba Management (Pvt) Limited are not prepared except on year ended June 30; and are not material hence no effect of results of Al-Noor Modaraba Management (Pvt) Limited has been taken in these condensed interim financial statements.
7. CONTINGENCIES AND COMMITMENTS
7.1 Contingencies
There is no material change in status of contingencies as disclosed in note No. 26 (a) of the annual financial statements for the year ended September 30, 2019.
Un-Audited Audited March 31, September 30, 2020 2019 (Rupees in thousand) 7.2 Commitments
Commitments for capital expenditure - 185,838 Commitments for stores and spares - 3,846 - 189,684 Bank Guarantees in favor of Excise and Taxation Department 500 500
For the half year For the Quarter October to March January to March 2020 2019 2020 2019 (Rupees in thousand) 8. COST OF SALES
Opening stock of finished goods 1,387,030 1,539,616 240,679 841,093 Cost of goods manufactured 5,541,482 4,760,335 4,668,196 3,614,005 6,928,512 6,299,951 4,908,875 4,455,098
Closing stock of finished goods (Note 8.1) (2,964,365) (3,033,810) (2,964,365) (3,033,810) 3,964,147 3,266,141 1,944,510 1,421,288
Export and related expenses 540,499 399,196 325,709 196,609
4,504,646 3,665,337 2,270,219 1,617,897
8.1 At period end stock pledged against short term borrowings amounted to Rs. 2,043 million (March 2019 : 2,524 million).
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9. TAXATION
Provision for current taxation is made on the basis of minimum and final taxation. Deferred tax asset of Rs 146 million has not been recorded in view of uncertainities related to availability of future taxable profit against which unabsorbed lossed may be adjusted.
10. TRANSACTION WITH RELATED PARTIES
Related parties comprises of associated entities, staff retirement funds, directors and key management personnel. The transactions with and balances of related parties during the period/as at period end are given below:
March March Transactions: 2020 2019 Relationship with the Company Nature of Transactions (Rupees in thousand)
Associates Al-Noor Sugar Mills Limited -Purchase of Goods 482,446 284,854 Reliance Insurance Company Limited -Insurance premium 22,213 20,130
Other related parties Directors' and key management personnel -Directors remuneration 8,772 14,735 -Executive remuneration 28,382 22,591 -Non-executive directors' meeting fee 120 72
Staff provident fund excluding Directors -Company's Contribution during the period 3,396 2,969
Other related parties Loan repaid during the period - 22,853
March September 2020 2019 Balances: Relationship with the Company Nature of Transactions (Rupees in thousand)
Associates
Al-Noor Sugar Mills Limited Loan and advances - 105,000 Al-Noor Sugar Mills Limited Trade & other payables 40,638 - Reliance Insurance Company Limited Trade & other payables 22,213 - Staff provident fund Trade & other payables 1,721 150
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11. RELATIONSHIP WITH THE ISLAMIC AND CONVENTIONAL FINANCIAL INSTITUTION
The Company in the normal course of business deals with sole Islamic financial institutions as well as the financial institutions who operate both the conventional side and Islamic window. The details segregation between Shariah complaints and conventional assets/liabilities and income/expenditure are given below:
As at March 31, 2020 As at September 30, 2019 Rupees in thousand Rupees in thousand Islamic Mode Conventional Total Islamic Mode Conventional Total
Long term financing-Musharka and other finances 623,750 536,691 1,160,441 766,250 574,563 1,340,813 Current portion of long term finance 285,000 74,688 359,688 285,000 73,560 358,560 908,750 611,379 1,520,129 1,051,250 648,123 1,699,373
Accrued finance cost 42,824 37,598 80,422 28,359 11,457 39,816 Short term borrowings 1,350,000 4,271,454 5,621,454 750,000 2,362,830 3,112,830 Short term investment - - - 200,714 - 200,714 Cash at banks (12,215) (70,639) (82,854) (9,624) (52,625) (62,249) 2,289,359 4,849,792 7,139,151 2,020,699 2,969,785 4,990,484
Half year ended March 31, 2020 Half year ended March 31, 2019 Rupees in thousand Rupees in thousand Islamic Mode Conventional Total Islamic Mode Conventional Total
Finance cost 103,504 86,127 189,631 71,946 96,755 168,701 Income from PLS bank account (34,604) (52) (34,656) - (25) (25) 68,900 86,075 154,975 71,946 96,730 168,676
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12. SEGMENT INFORMATION
The Company's operating businesses are organized and managed separately according to the nature of products produced with each segment representing a strategic business unit that offer different products and serves different markets. The sugar segment is engaged in manufacturing and sale of the sugar and its by products whereas ethanol segment is engaged in manufacturing and sale of ethanol. The following tables represents revenue and profit information regarding business segment for the half year ended March 31, 2020 and March 31, 2019 and assets and liabilities information regarding business segments as at March 31, 2020 and September 30, 2019.
Sugar Ethanol Consolidated Half year ended Half year ended Half year ended March 31, March 31, March 31, 2020 2019 2020 2019 2020 2019 (Rupees in thousand) REVENUE External Sales 1,465,745 1,245,475 3,598,586 3,298,479 5,064,331 4,543,954 Inter segment transfer 367,335 272,175 - - 367,335 272,175 Total 1,833,080 1,517,650 3,598,586 3,298,479 5,431,666 4,816,129
RESULTS Profit from operation (143,461) (146,713) 560,581 846,760 417,120 700,047 Profit from trading activity 1,125 1,353 - - 1,125 1,353 (142,336) (145,360) 560,581 846,760 418,245 701,400 Other operating charges (27,964) (47,943) Other income 105,617 70,279 Finance cost (189,631) (168,701) Profit before tax 306,267 555,035 Taxation (57,740) (3,687) Profit for the period 248,527 551,348
SEGMENT ASSETS AND LIABILITIES March September March September March September 2020 2019 2020 2019 2020 2019 (Rupees in thousand) Assets Segment assets 5,156,785 3,649,910 7,181,737 6,192,247 12,338,522 9,842,157 Un-allocated assets 557,889 547,349 Long term investment 1,351 1,351 Total assets 12,897,762 10,390,857
Liabilities Segment liabilities 4,123,270 1,782,667 4,467,149 4,133,766 8,590,419 5,916,433 Unallocated liabilities 40,030 96,621 8,630,449 6,013,054
Half year ended Half year ended Half year ended March 31, March 31, March 31, 2020 2019 2020 2019 2020 2019 OTHER INFORMATION Additions to property, plant and equipment 203,957 93,913 43,034 250,925 246,991 344,838 Depreciation 46,738 43,783 136,289 123,915 183,027 167,698
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Revenue from major customers
During the period external sales to major customers amounted to Rs. 1,868 million. (2019: Rs. 2,245 million) Geographical information
All non-current assets of the Company are located in Pakistan. Company's local external sales represent sales to various external customers in Pakistan as well as outside Pakistan as follows:
For the period ended March 31, 2020 2019 Pakistan 1,107,570 1,245,475 Ghana 621,599 468,982 Angola 453,549 312,324 Afghanistan 358,175 - South Korea 280,692 87,704 Thailand 225,180 87,765 Sierra Leone 207,579 66,119 Ivory Coast 191,995 109,311 Cameroon 182,740 100,459 Jordan 166,835 - Tanzania 158,030 6,399 Philippines 141,087 242,091 Kuwait 136,112 - Unied Arab Emirates 110,767 25,123 Singapore 109,687 273,448 Turkey 97,686 263,481 Liberia 80,926 - Saudia Arabia 79,538 15,020 Taiwan 44,786 44,023 Nigeria 10,792 333,548 Italy - 239,391 Netherlands - 124,327 Spain - 105,038 India - 35,389 Others 299,006 358,537
5,064,331 4,543,954
13. WORKERS PROFIT PARTICIPATION FUND, WORKERS WELFARE FUND AND TAXATION
Allocation to the Worker's Profit Participation Fund, Worker's Welfare Fund and provision for taxation are provisional. Final Liability would be determined on the basis of annual results.
17 SHAHMURAD SUGAR MILLS LTD.
14. FAIR VALUES
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly observable or estimated using another valuation technique.
The Company while assessing fair values uses calculation techniques that are appropriate in the circumstances using relevant observable data as far as possible and minimizing the use of unobservable inputs. Fair values are categorized into following three levels based on the input used in the valuation techniques:
- Level 1: Quoted prices in active markets for identical assets or liabilities that can be assessed at measurement.
- Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices)
- Level 3: Inputs are unobservable inputs for the asset or liability. Inputs for the asset or liability that are not based on observation market data (that is, unobservable inputs).
Financial assets and liabilities of the Company are either short term in nature or are repriced periodically therefore; their carrying amounts approximate their fair values.
15. AUTHORIZATION
These condensed interim financial statements were authorized for issue on May 28, 2020 by the Board of Directors of the Company.
16. GENERAL
16.1 Figures have been rounded off nearest to thousand rupees.
ZIA ZAKARIA AZIZ AYOOB ZAID ZAKARIA Managing Director & CEO DIRECTOR Chief Financial Officer
18 SHAHMURAD SUGAR MILLS LTD.
2020 28
19 SHAHMURAD SUGAR MILLS LTD.
20 SHAHMURAD SUGAR MILLS LTD.
2019 2020
21 BOOK POST PRINTED MATTER
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96-A, SINDHI MUSLIM SOCIETY, KARACHI-74400.